BE AWARE BEFORE YOU BUY A HOUSE PROPERTY

[D. Saha & Co.]

BE AWARE BEFORE YOU BUY A HOUSE PROPERTY

Any Negligence Will Take A Toll On One’s Financial Health.

An individual spends a critical lump of their life working towards buying property. Property purchasing can regularly be muddled. Jargons coast around and you can be mistaken for all the legal jargon.

1. Follow the following advice to stay one step ahead:-

Agreement To Sell
It is the first document prepared fully expecting an offer of the property. It contains a point-by-point depiction of the property and states the terms of conditions between the purchaser and the dealer, including the price as settled upon.

Absolute Sale Deed And Title Deed
The sale deed or title deed is the main report that records the real exchange of ownership for a property. It should be registered at the sub registrar’s office under whose locate the property would fall.

Title Search And Report
Property title search is an interaction of recovering the chain of reports identifying with the historical backdrop of the property that has been enlisted with the concerned power. It incorporates a portrayal of the property and names of champions, joint occupancy; and so on. It is particularly significant for obtaining a home credit.

2. Money Suit Search  & Title Suit Search Report:-
One should also search for the last 12 years Money suit and Title Suit records in the local jurisdictional records.

3. Newspaper Insertion:-
Last Caveat Emptor formalities should be complied by giving an insertion in local newspapers of two languages – one in Vernacular and one in English.

Khata Certificate
This document is known by various names in various states and it gives evidence that the property has a passage in the local municipal records

Receipt Of Property Tax
The receipts of property tax hold that the past proprietor or occupier had made good on all the expenses and none have been left as due. They likewise set up the legitimate status of the property and hence fill it in as an important document of evidence.

Encumbrance Certificate
An encumbrance authentication expresses that the property is liberate from all encumbrances or loans. It is a key document for getting a credit against the property from banks. It has every one of the insights regarding transactions identifying with the property.

Occupancy Certificate
An occupancy certificate is given by the city enterprise after the development of a structure to set up that it was built by an authorized arrangement and that it is fit to be involved.
Statement from the bank if loan outstanding
On the off chance that any loan is remarkable on the property that is being bought, it is protected to obtain the assertions identifying with the advance so that there is complete honesty in such manner.

Non-Objection Certificates
It is important to ask the developer to deliver copies from different NOCs that should be obtained from different offices, for example, the Sewage Board, Pollution Board, Environment Department, Traffic and Coordination Department, and so forth. This structures the ‘implication of objection’ for the development of the structure.

Sanctioned Building Plan By Statutory Authority
This is to guarantee that the purchasers are wary about any deviations from the authorised arrangement made by the engineer.

Power Of Attorney/S, If Any
A Power of Attorney is needed in unique if an individual is following up on the approval of the proprietor of the property. It very well may be general or explicit.

4. Income Tax related formalities (Tax):-

Amendments to section 194-IA
Under section 194-IA any person responsible for paying to a resident any sum by way of consideration for transfer of any immovable property (other than agricultural land) is required to deduct tax at source at the rate of 1 per cent of such consideration. It is 1 per cent of consideration even if stamp duty value is higher. To incorporate the reference of stamp duty value within the parameters of section 194-IA, the following amendments have been made with effect from April 1, 2022 –
1. Tax rate – Tax will be deducted under the modified version of section 194-IA at the rate of 1 per cent of consideration or stamp duty value, whichever is higher.
2. Threshold limit – Tax will not be deducted where consideration is less than Rs. 50 lakh as well as stamp duty value is less than Rs. 50 lakh.


Deduction of tax at source from other sums
A person responsible for making payment to a non-corporate non-resident assessee or to a company other than a domestic company, of any interest or any other sum (not being salary) is required, at the time of payment or at the time of credit to the account of payee, interest payable account, or suspense account, or at the time of payment, whichever is earlier to deduct income-tax thereon at the rates prescribed by the relevant Finance Act.

Only in case of doubt, deductor can approach Assessing Officer under section 195(2)
The application of section 195 (2) pre-supposes  that the person responsible for making the payment to the non-resident is in no doubt that tax is payable in respect of some part of the amount to be remitted to a non-resident but is not sure as to what should be the portion so taxable or is not sure as to the amount of tax to be deducted. In such a situation, he is required to make an application to the ITO (TDS) for determining the amount. It is only when these conditions are satisfied and an application is made to the ITO (TDS), that the question of making an order under section 195(2) will arise.

Prescribed form and procedure
As per rule 29BA, application for grant of certificate (in the case of payment other than salary to a non-resident) for determination of appropriate proportion of sum chargeable under section 195(7)/(2).

Disclaimer :- (You are advised to consult your Legal Counsel before taking any decisions. This is issued only for the purpose of public awareness and information. The Contributor or any of his employees/associates will not take any responsibility for any actions of the reader based directly or indirectly on the basis of the above Article.)